Thoughts on Investing

Posted by: EFS Strategic Uncategorized November 21, 2019

Should you buy when markets are high?

We look at how you would have done in the past by investing at market all-time highs.

Thousands of hopeful shoppers log on, or line up, from the early hours knowing they’ll bag a bargain, at much less than full price.

We see similar behaviour in investing. There’s a tendency to wait until markets are ‘on sale’ to bag that bargain. The problem with this strategy is we never know when the next sale is coming up, or what the discount may be.

Also since markets generally trend upwards, there’s a chance the sale will never happen and you’ll end up buying even higher than today’s price!

Back in July 2019 we asked if Australian shares are expensive compared to history? We concluded that they were actually at long term historical average prices.

In this article we consider a different question: “should I invest when the market is high?^

Should you fear investing when markets have never been higher?

We look at how you would have done in the past by investing at market all-time highs.

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